A recent regulatory game in the US Congress is worth paying attention to. The head of the Senate Judiciary Committee publicly opposed Section 604 of the "Blockchain Regulatory Certainty Act," and the main issue lies here: this section aims to protect software developers from being held liable due to third-party misuse of code, but the Judiciary Committee believes that doing so would weaken federal oversight of unlicensed money transfer activities.

What exactly is happening? The Department of Justice cited the case of Tornado Cash developer Roman Storm to emphasize the necessity of holding accountable illegal money transfer activities under current regulations. Once this protective clause takes effect, it could limit the government's enforcement space.

The situation is even more complicated—an originally scheduled committee debate this Thursday was canceled, and the opposition voices are quite strong. If this clause is retained, it would require approval from a third committee, making the legislative process more sluggish.

The attitude of the DeFi community is also quite interesting: if ultimately there is no developer protection clause, some advocates say they might withdraw support for the bill. This essentially indicates that negotiations could reach a deadlock—while the Department of Justice worries about regulatory loopholes, the DeFi camp fears over-penalizing developers.